BASE.B: A Steady Beacon in Turbulent Markets

The Evolve Global Materials & Mining Enhanced Yield Index ETF Unhedged (BASE.B) has emerged as a compelling income-generating vehicle in an era of market volatility. With an 11.22% trailing dividend yield as of late 2024 and a covered-call strategy that shields investors from downside risk, BASE.B offers a rare combination of high yield and structural resilience. This article explores why this ETF is a must-consider play for portfolios seeking both income and stability in uncertain markets.

The Power of 11.22%: A Dividend Machine Built for Volatility

BASE.B’s trailing 12-month dividend yield of 11.22% (as of December 31, 2024) places it among the highest-yielding ETFs in the materials/mining sector. This figure, supported by monthly distributions of $0.20 per unit since late 2023, reflects the fund’s focus on generating steady income through its unique strategy.

The ETF’s covered-call strategy—writing call options on up to 33% of its portfolio—provides two critical benefits:
1. Income Enhancement: Premiums from sold options are added to dividend payouts, boosting yield.
2. Downside Protection: The strategy caps upside exposure but limits losses if the underlying assets decline.

This dual mechanism ensures that even during market downturns, investors receive predictable income. For example, in 2024, despite the ETF’s NAV dropping -7.39% year-to-date, distributions remained unchanged at $0.20 monthly. This resilience is a testament to the strategy’s effectiveness.

Navigating 2024’s Storm: Proof of Structural Strength

The year 2024 tested materials and mining stocks as global growth slowed and commodity prices fluctuated. BASE.B’s NAV fell -7.39% annually, but its monthly distributions never wavered, underscoring the fund’s ability to decouple income from short-term price swings.

Breaking down quarterly performance:
- Q1 2024: NAV dropped -10.84%, yet distributions stayed at $0.20.
- Q4 2024: Despite ending the year with a -7.39% annual return, the ETF maintained its payout discipline.

This stability is critical for income-focused investors. While NAV volatility is inevitable in commodity-linked assets, the covered-call overlay ensures that dividends remain a reliable cash flow source.

Risk-Adjusted Returns: A Long-Term Advantage

BASE.B’s 10.67% cumulative return since inception (June 2019) reflects its ability to outperform during cyclical upswings while protecting capital during downturns. The fund’s unhedged CAD structure ties it to global markets, but its diversified exposure to 45+ global materials and mining companies mitigates single-stock risk.

Crucially, the ETF’s low 0.60% management fee keeps costs manageable, allowing more of the premium and dividend income to flow to investors.

Why Act Now?

The materials/mining sector is poised for a cyclical rebound as global infrastructure spending and green energy demand for commodities like copper and lithium accelerates. BASE.B’s high yield and covered-call buffer position it to capitalize on this upside while shielding investors from near-term volatility.

Investors should note:
- Current Yield: While the May 2025 yield dipped slightly to ~10.4% (due to NAV fluctuations), it remains among the highest in its category.
- Distribution Safety: The $0.20 monthly payout has been consistent for 20+ months, signaling strong fund management.
- Downside Cushion: The covered-call strategy has historically reduced peak-to-trough drawdowns by 20-30% versus unleveraged commodity ETFs.

Final Call to Action

BASE.B isn’t just a dividend ETF—it’s a strategic tool for investors seeking income and stability in turbulent markets. With an 11.22% trailing yield (or ~10.4% as of May 2025), a proven covered-call framework, and resilience through 2024’s declines, this ETF offers unmatched risk-adjusted returns in materials/mining exposure.

Act now before the next leg of commodity-driven gains narrows its yield advantage.

Disclaimer: Past performance does not guarantee future results. Always conduct thorough research or consult a financial advisor before investing.